The demand for a certain company's e-reader can be approximated by 720 q = - 1 million units per year (60 sp S 400), where p is the price charged by the company. Assume that the company is prepared to supply q = 0.018p - 1 million units per year (60 spS 400) at a price of $p per unit. (a) Calculate the equilibrium price and equilibrium demand. equilibrium price $4 equilibrium demand million e-readers per year (b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended. q(p) q(p) q(p) (d)b 12 12 12 12 10 10 10 10 8 8 8 8 6 6 6 6 4 4 2 p 500 100 200 300 400 500 100 200 300 400 500 100 200 300 400 500 100 200 300 400 (c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $74. (Round your answer to one decimal place.) There would be a ---Select-- of million e-readers.

The demand for a certain company's e-reader can be approximated by 720 q = - 1 million units per year (60 sp S 400), where p is the price charged by the company. Assume that the company is prepared to supply q = 0.018p - 1 million units per year (60 spS 400) at a price of $p per unit. (a) Calculate the equilibrium price and equilibrium demand. equilibrium price $4 equilibrium demand million e-readers per year (b) Graph the demand and supply functions to confirm your answer in part (a) graphically. A graphing calculator is recommended. q(p) q(p) q(p) (d)b 12 12 12 12 10 10 10 10 8 8 8 8 6 6 6 6 4 4 2 p 500 100 200 300 400 500 100 200 300 400 500 100 200 300 400 500 100 200 300 400 (c) Estimate, to the nearest 0.1 million units, the surplus or shortage of e-readers if the price is set at $74. (Round your answer to one decimal place.) There would be a ---Select-- of million e-readers.

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 19SQ

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